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Outlook on Africa’s Gaming Industry 2020-2025 – Mobile Gaming Will Hold a Major Market Share

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The “Africa Gaming Market – Growth, Trends, and Forecasts (2020-2025)” report has been added to ResearchAndMarkets.com’s offering.

The gaming industry is expected to register a CAGR of 12% during the forecast period (2020-2025). The most recent trend is the growing availability and popularity of multi-functional gaming console, which is emerging in the market and helping in growing the market of video games in the region.

Africa is the only region in the world where the youth population is increasing. By 2050 Africa’s young people, i.e., those aged between 0 and 24 years old, will increase by nearly 50 percent. Africa will have the most significant number of young people. Africa’s youth are critical to the continent’s future when it comes to mobile and gaming as a whole.

African studios are making new inroads by launching original locally produced content on Netflix. Several local content productions have been nominated for several global awards, including the Oscars. The Annecy Festival in 2020 will be focusing on animation from Africa. In addition to this, government initiatives in the region are adopting gaming solutions for educational purposes. Developments such as these will provide opportunities for the gaming industry in the area.

During the lockdown, the Entertainment streaming and gaming industries are thriving. The global suspension or cancellation of most sporting events has left punters without live games to bet on, aside from re-runs of filmed matches. The knock-on effect is that sports betting, which accounts for most of the industry’s revenue, has crashed to almost nil.

While the traditional gambling industry is facing unparalleled losses, online gambling sites have reported a surge in activity since the national lockdown came into effect on 27 March 2020. While online casinos worldwide have reported a sharp increase in gambling, as lockdown periods are extended, and financial stresses intensify, people may become increasingly hesitant to spend money on non-essential pastimes, such as gambling.

Key Market Trends

Mobile Gaming Segment Expected to Have Major Market Share

  • Mobile gaming generates close to half of the revenue that the gaming industry gets annually. More than 200 million Africans are below 35 years, and this figure might double in a decade. Africa has a huge market for gaming and smartphone companies.
  • Mobile gaming is gaining popularity in remote parts of Africa. For example, more than 290 million people in North Africa use mobile phones. The mobile market in the region generates $90 billion annually.
  • One of the major drivers for the growth of mobile gaming is the potential to spawn a massive real-money gaming industry around the continent. Mobile tech spreads around the continent, large swaths of Africa are also paving the way for legal betting and gaming.
  • However, acceleration in network rollouts by mobile operators in Sub-Saharan Africa has been a vital driver of the reduction in the coverage gap. Infrastructure deployment in Sub-Saharan Africa increased 3G coverage from 63% in 2017 to 70% in 2018, extending access to more than 80 million people. 3.3 billion people live in areas covered by mobile broadband networks but do not use mobile internet – this usage gap’ is more than four times greater than the coverage gap. Such factors might harm gaming companies operating in the region.

Issues Such as Piracy, Laws & Regulations, and Concerns Relating to Fraud During Gaming Transactions will Impact the Growth of the Market

  • Most African countries have gaming commissions and laws that regulate gambling. South Africa has clear gaming laws and regulations. It was the first country to create gambling regulation in the continent. Also, online casinos are popular in the country.
  • In South Africa, several legislative attempts to further restrict online gambling and payment transactions of unlicensed operators have been postponed in recent years. However, some legislators and regulators at the provincial level have called for a less restrictive regime.
  • There is currently an ongoing political and religious debate on the perceived high number of minors accessing gambling. As a result, in May 2019, the minister of finance urged the National Gaming Board (NGB) to stop issuing gaming and betting licenses immediately. The government restricted gambling advertising as of January 2019. Additional measures to ensure responsible gambling and revenue collection to the state budget are on the list.
  • A new advocacy organization designed to collaborate, coordinate, partner, build and sustain the growth of esports on the continent has been formed. ESFA or The Esports Federation of Africa is established by a community of both private esports entities, and national federations. WESCO affiliates it. With the launch of the ESFA, African gamers now have a voice, an advocate, an organization with grassroots developments of players at its core. These will provide better opportunities and therefore strengthen the local market in the region.

Competitive Landscape

The gaming market is fragmented as the demand for online games, and increasing penetration of mobile applications across the region will help attract new players in this market over the next few years. Recent developments in the market are:

  • In May 2020, Sony announced new PlayStation Studios branding for its first-party PS5 games. Sony will be using the new PlayStation Studios brand for its first-party exclusives going forward as a way to let customers know that a game comes from one of Sony’s in-house development teams.
  • In August 2019, Konami Digital Entertainment BV announced that the mobile version of e-Football PES 2020 would be released in October, and it represents a complete overhaul of the current PES 2019 mobile game. The latest major update to the PES Mobile series, which celebrated over 200 million downloads earlier this year, brings many of the critical features and licenses already announced for e-Football PES 2020 on PC and console.

Africa

TCSJOHNHUXLEY Africa and umAfrika Gaming Technologies to jointly support the 2022 Learnership Programme

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TCSJOHNHUXLEY Africa and umAfrika Gaming Technologies to jointly support the 2022 Learnership Programme
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Following the success of the 2021 programme, TCSJOHNHUXLEY Africa and umAfrika Gaming Technologies have again combined resources to support the 2022 Learnership Programme – an important initiative that upskills young unemployed South Africans so they can go on to find work in the gaming industry.

Launched in 2016 the one year leadership programme aims to develop students’ skill sets and provide them with the experience of working environments in South Africa, as well as familiarising them with general operations and procedures. One of the main objectives of the programme is to strengthen and expand the gaming industry with qualified engineering technicians by recruiting local talent from higher education institutions.

Ten students, from various higher learning institutions were selected for the programme. The students then had to complete a series of assessment procedures to gauge their capabilities, and throughout the year, had to satisfy various elementary outcomes before successful completion of the training.

Nosipho Fakude, a student who was part of the 2021 learnership, described the programme as an eye-opening experience. “The programme is truly interesting, and I am learning so much, not only about field of study – engineering, but that of the gaming industry through TCSJOHNHUXLEY and umAfrika Gaming Technologies.”

TCSJOHNHUXLEY wishes the 2021 Technical Learnership Programme candidates all the best for the future and welcomes the the Class of 2022 to this exciting journey ahead.

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Africa

GLI Africa Recognised for 20 Years of Accreditation

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GLI Africa Recognised for 20 Years of Accreditation
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Gaming Laboratories International (GLI®) in Africa has been awarded a certificate of recognition from the South African National Accreditation System (SANAS) for maintaining its continuous accreditation for more than 20 years.

SANAS is recognised by the Accreditation for Conformity Assessment, Calibration and Good Laboratory Practice Act, 2006 (Act No. 19 of 2006) as the sole national accreditation body for providing an internationally recognised and effective accreditation.

GLI Africa is accredited by SANAS for Performance Testing (ISO/IEC 17025) and Inspection (ISO/IEC 17020), and the certificate recognises 20 uninterrupted years of accreditation for Performance Testing.

Devon Dalbock, General Manager of GLI Africa said, “This is a fantastic achievement for GLI Africa and demonstrates the extremely high standards the GLI team in Africa and globally consistently work to. This is also great news for our clients and suppliers looking to certify their products for the South African market. By trusting GLI with their compliance testing requirements, they can be assured of the highest levels of integrity and secure in the knowledge that their products will conform to local technical standards.

“The GLI team in Africa has continued to expand throughout the last 12 months to meet the global demand for GLI services with the introduction of 43 new team members, bringing the total to more than 90. We have also launched the GLI complete suite of Integrated Compliance Solutions, which provides companies of all sizes with the tools they need to comply with their regulatory and technical obligations, all in one place.”

GLI is recognized by accreditation bodies worldwide for accreditations to ISO standards for testing ((ISO/IEC 17025), field inspections ((ISO/IEC 17020), product certification (ISO/IEC 17065) and certification of information systems management systems (ISO/IEC 17021). This global scope of accreditations allows GLI the flexibility to serve our customers 24 days hours a day, seven days a week.

 

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Africa

MERKUR sun shines over the roof of Africa

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MERKUR sun shines over the roof of Africa
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Gauselmann employees from Serbia climb Kilimanjaro

To experience the sunrise from the summit of Mount Kilimanjaro: this was the goal of four employees from Gauselmann subsidiary MERKUR Games d.o.o., which consolidates the Group’s activities in Serbia. During a six-day expedition, together with ten other adventurers, they climbed the highest mountain on the African continent – to be rewarded with a breathtaking view from Uhuru Peak, at 5,895 metres above sea level.

“It was an incredible battle of wills, with the forces of nature, patience and our own endurance,” says Branko Kokir, Managing Director at MERKUR Games d.o.o. and initiator of the expedition, looking back on the feat. Climbing for six to eight hours, the team covered ten kilometres on foot and overcame a difference in altitude of 1,000 metres each day. From grasslands, alpine meadows and tropical rainforests, moorlands and desert plateaus, to snow- and ice-covered regions: day by day, the team pressed onward through different climatic zones in their quest to reach the summit of Kilimanjaro. At an altitude of 4,700 metres above sea level, the adventurers set off on the final leg: the ascent to Uhuru Peak. In the final nighttime push, the team covered 5.8 kilometres in 7.5 hours before reaching the cross on the summit in time for sunrise just before 7 a.m. and proudly displaying a flag with the MERKUR sun symbol over Uhuru Peak.

A cameraman who documented the expedition with his camera and interviews was also part of the 14-member team. The material is being broadcast in six 30-minute episodes on “Sport Klub”, the leading sports channel in the Balkans. The MERKUR sun also features as a faithful companion on the trek to Africa’s highest peak: during the entire journey, the team members wore T-shirts, sew-on badges, caps and carried flags. The local population was thrilled to be given T-shirts and footballs with the MERKUR sun as a gift from the Gauselmann Group. “Climbing Kilimanjaro is a remarkable feat of will. I am immensely proud that our Serbian employees took the MERKUR sun along for the trip and shone it over the roof of Africa,” says company founder and Chairman of the Management Board Paul Gauselmann.

The Gauselmann Group is represented in Serbia by its MERKUR Games d.o.o. subsidiary. The company opened the first gaming arcade there in 2012 under the MERKUR Automat Klub brand. In 2017, business activities in the Serbian market were systematically expanded through strategic partnerships. With a 50 per cent equity holding respectively in the two companies Balkan Bet and MERKUR Xtip, the Gauselmann Group is optimally positioned with some 140 land-based venues as well as online in the Serbian Republic.

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